Zoetis has dropped over 50% in the past year, creating a potentially attractive entry for long-term dividend growth investors. ZTS's underperformance stems from persistent inflation, lower U.S. companion animal demand, and increased competition, leading to revised 2026 guidance and a recent sell-off. Despite headwinds, ZTS maintains a strong balance sheet, well-covered dividend (39% payout ratio), and ongoing buybacks, supporting long-term shareholder value.